Topic: PACE Workshop Notes

Topic type:

Notes from the 27/3/2010 PACE workshop put on by VEIC and VNRC.

 

9AM - PACE 101

  • A statewide "aggregator" has been proposed/may be planned for Vermont.
    • Both Berkeley's and Boulder's PACE programs scaled up quickly; "Berkeley First" into "Cal First," Boulder City's into Boulder County's.
  • Because PACE is an "Opt-in" program, its funding is not tax-exempt.
  • Each municipality implementing PACE can set more stringent criteria than was set in Act 45 (Vt's PACE law).
  • PACE cost is not included in the assessment of a house having completed a PACE project, because...[didn't catch]
  • Typically, installation of an "energy project" such as solar hot water or solar electricity, does not increase the value of the house.
  • Vermont's PACE does not require the project's savings to be more than the investment.
  • VEIC just received PACE funding (to assist municipalities' implementations).

 

10AM - PACE 202

  • "consistent with BISHCA" can be interpreted. [...]
  • A "reserve fund" (funded by participants, to cover costs of any default), can be regional.
  • Act 45 includes commercial properties, but a town can limit further.
  • A town can include the cost of assessment in the loan to the owner.
  • Fannie Mae on PACE: the lien is senior to the mortgage (like property taxes).
    • DOE is "nonchalant" about this, because it's paid back bit by bit, and is offset by $ savings.
  • VEIC intends to produce one form with which to process a PACE project.

 

11AM - "Show me the money"

  • PACE measures are 1:1 with incentive-able measures -- i.e. they ALL qualify for tax and/or other incentives.
    • one qualification: they must be affixed to the building.
  • The money flow: municipality->contractor.
  • Efficiency VT and Burlington Electric Dept -- the two current PSB-appointed energy efficiency utilities (EEUs) -- expect to be able to absorb their costs.  That is, to play their role reviewing and approving analyses quantifying a PACE project's costs, energy savings and carbon impacts including annual cash-flow, without passing on any costs to participants.
  • A PACE town's bond will operate as a line of credit -- the money will be disbursed only as qualified projects come forward.
  • Actual defaults, nationwide, have been about 0.1%
  • VEIC just received approximately $100k to assist PACE towns.
  • Four towns will be working on PACE adoption/administration with VEIC, using EECBG $.

 

1PM - Starting a PACE in Your Town

  • Any town's PACE can add criteria over and above Act 45's.
    • e.g., though Act 45 doesn't require it, a town can limit PACE-qualified projects to "net-savings" projects.
    • No town has yet incentivized efficiency projects over alternative-fuel, but RERC is moving toward this. (note: this seems odd given what RERC does.)
  • Burlington's PACE team meets every two weeks.
  • Burlington is considering partnering with other towns.
  • Burlington is considering in-house underwriting.
  • Newport (which has adopted PACE) had CEAD added to its Town Plan's language ("Newport should investigate CEAD...")
  • It was suggested that a town can send a survey around asking "what type of program incentives/restrictions/etc. would you prefer."
  • Good people to have on your committee:
    • Lister
    • Appraiser
    • Bank person

 

2pm - Regional/Statewide Aggregation?

  • A regional body qualifying as a PACE "aggregator" must be established by public process as a regional government by Vermont's Inter-Local Agreement statute (VSA 24 Chap.121).
    • The towns forming such an Inter-Local Agreement need not be geographically contiguous or even proximate.
    • indeed, Waitsfield and several other scattered towns formed a joint administrative district.  VEIC assisted here.
  • A charter agreement must be developed by this body before it can be established as such.
  • VLCT provides assistance to those considering going this route.
  • 4 communities in the Mad River Valley often plan together [didn't catch whether they've been chartered]
  • Some aspects of PACE work more efficiently when aggregated: e.g.
    • processing applications
    • underwriting
  • Others don't, e.g. amending quarterly tax payments.  
  • In an aggregated PACE program, there would be some "matching" commitments for member towns.
  • VEIC's learning curve with the four towns currently engaging in PACE will inform this subject further.

 

PACE and Montpeler/MET:

  • We can apply for VEIC funding (see note above re: $100k funds) to assist us.
  • VEIC will likely create a "letter" for us to hand to the City Council to state Montpelier's intent to adopt PACE: "we intend to create...".  This should be on the VEIc and/or VLCT websites.

 

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PACE Workshop Notes


Subject Area:

Municipal financing of efficiency and alternative fuels.

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